The are: Demographic factors Economic factors Natural

The Fast Food Industry is one of the greatest industry and also has great prospects currently. Based on the food and the customer service they offer, fast food shops may differ from one another. Considering the market that they are catering to, they are required to formulate marketing strategies in order to attract more customers as well as to retain the existing ones.  

The basic environmental forces affecting the fast food industry (INDIA) are:

Demographic factors

Economic factors

Natural factors

Technological factors

Political factors

Demographic Factors

The study of human population in terms of size, density, location, age, race, occupation.

• Changing age structure of the population

The ever-increasing number of young population is one of the major changes. Marketers in the fast food industry would be required to market their products and services for different target markets. For instance, McDonald’s advertisements are aiming for younger generation, by selling burgers at affordable prices. Moreover, as the population is increasing, more number of people are shifting in bigger cities, due to which fast food restaurants might need to open new stores to keep up with the demand.

Economic Factors

• Changes in income and changes in consumer spending patterns are the economic concerns for marketers.

• Consumer spending refers to the division of household income, changes in income on the other hand indicates the sales trends.

• By supervising unemployment, changes in interest rates, and economic depressions or bursts of growth, economic factors can be used to predict future sales rates.

Natural Factors

Marketers are required to be aware of the threats and opportunities associated with the natural environment. Not all of these factors affect the consumer services, but still can have some effect on the fast food market.

• Shortages of Raw Materials

o Many resources once had an infinite supply and can be considered as precious in the future which is why their usage is either being reduced or alternatives are being used instead. An example of the same could be of McDonald’s which is now using recycled paper to wrap the burgers, which has reduced the cutting of trees.

• Energy Costs

o Due to dwindling prices of oil and coal, fast food prices are likely to increase as the transportation costs rise. Some outlets might need to look for other options as to how to cook their product.

• Increasing Pollution Levels

o Pollution has also changed the view of many consumers. Increasing levels of pollution already has an impact.  In response for a more environmentally friendly packaging McDonald’s started using paper instead of polystyrene boxes. By doing so, consumers feel that they are consuming something which has had a minimal impact on the environment. Government is also taking up certain measures to ensure less environmental damage. Organizations can respond to this by either helping them develop or by opposing these regulations.

Technological Factors

• Development of  new technologies has made it mandatory for all companies to be informed at all times. Some systems make the customers feel honoured. For example, Domino’s pizza has a special system which keeps a track of the customer’s name and address, so that in future whenever the customer rings in again, the attendant can address the customer by their name.

• With so many different shops serving similar types of food and services, it’s necessary for the fast food joints to be concentrating on minor improvements such as changing décor, packaging, customer service carried out over call, the menu lists hanging over counters.  All of this can only be taken care of with the help of the advanced technologies available.

Political Factors

The following political conditions may affect the fast food industry:

• Enforcement

o At present, there has been an enforcement on excessive use of plastic bags. Shops have to now spend more on recyclable materials.

• Concern for Ethics

o With greater concern for ethics, fast food shops now comply with certain norms, such as, shops selling non-veg burgers need to maintain the standard. Inspections are carried out to keep a check on the quality of the products.

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